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Home My WebLink About07.27.11 Work Session Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP July 27, 2011 3:30 P.M. 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSS 2012 BUDGET 4. DISCUSS LICENSE CENTER 5. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session, all discussions shall be consideredfact-finding, hypothetical and unofficial critical thinking exercises, which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of a formal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as aformal expression of the City's position on any given matter. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Council Members FROM: Kevin Schorzman, Interim City Administrator Teresa Walters, Finance Director SUBJECT: Changes since the July 5,2011 Budget Work Session DATE: July 27,2011 INTRODUCTION: At the July 5, 2011 Council Workshop, Council received a packet that included a list of all items added to the budget (broken down by department), a list of potential items to be added to the budget (discussed during the department work sessions), the General Fund summary, and a worksheet that allows council to see the impact of their decisions on the taxes and the average property owner. UPDATE: Since the last work session there have been some changes that may affect the budget. 1. The State reached a budget agreement on Tuesday evening. a. Market Value Homestead Credit (MVHC) Reimbursement: The tax agreement includes a change to the way the MVHC is credited to property owners. The new method will provide homeowner relief by shifting taxes to all other property rather than covering the property tax credit reduction with a state paid credit reimbursement. We spoke with the County regarding this new calculation. They are uncertain regarding how they are supposed to calculate this. They are also not sure about the impact on Cities. b. Levy Limits The new budget agreement unveiled on Tuesday does not include a levy limit extension. 2. The Fire Relief Association Pension: The Pension obligation for the Fire Relief Association has been calculated to be $176,954. 3. Bond Refunding: At the July 18,2011 Council meeting, Council approved the refunding of the 2003A bond. This could provide a potential savings of approximately $13,000. The budget will be adjusted after the true savings is known. 4. Audit RFP: Also at the July 18,2011 Council meeting, Council approved new auditors at a reduced cost. The savings is minimal to the General Fund since we will distribute the savings between the funds that share in the cost of the auditors. BUDGET IMPACT: At this time there is no impact on the preliminary budget since there is uncertainty regarding the calculation of the MVHC, the State has not reviewed the Fire Relief Pension obligation and we do not have the fmal numbers on the bond refunding. DESIRED OUTCOME: Weare requesting Council provide staff with a balanced Preliminary budget that includes budget priorities and a levy increase to be passed at the last meeting of August or the first meeting in September. Council Minutes (Regular) June 6, 2011 Page 7 b) Approve Updated License Center Application - Human Resources With the resignation of the City Administrator, the City needs to appoint a new Deputy Registrar to open the License Center. Staff recommended appointing Brenda Wendlandt, Human Resources Director as Deputy Registrar, and Randy Distad, Parks and Recreation Director as Operations Manager. Human Resources Director Wendlandt asked for Council authorization to resubmit the application to Driver and Vehicle Services. Mayor Larson asked about the status of the bill in the legislature. Staffhas not heard from the legislators and was waiting for approval of the bill before bringing this forward. With the status of the State government, staff does not know what will happen. Councilmember May would rather not act on this until the new City Administrator is in place. It will not hurt our chances for a License Center if we do not appoint a Deputy Registrar now. We should have this discussion with the new City Administrator. Interim City Administrator SchorZlTIan explained the idea is to get to the point where we can sell the items we are allowed to through the original bill and should the new bill go through, we can add on to that. Councilmember May felt once the bill passes, we could appoint a Deputy Registrar. Mayor Larson stated we are allowed to sell everything except renew driver's licenses. When the bill passes, that would be added. Councilmember May understood we would not move forward until the bill passes. She felt she does not have all the information and clarified we want to appoint a Deputy Registrar to move forward with part of the business. Human Resources Director Wendlandt explained the other issue has been with Quick-Serv and they wanted to make sure the City was fully aware of the responsibility of running and managing the office. Submitting a new application verifies that. Councilmember May felt the new City Administrator should make this decision. The previous City Administrator held this position, so if the bill passes, the new City Administrator would hold this position. Staff explained if we want to open the License Center we have to have a Deputy Registrar. We can change it later with a new City Administrator. Once the application is submitted the DVS needs to approve it, an inspection needs to be done of the area, and obtain equipment. City Attorney Jamnik stated we cannot open until we receive approval from DVS. The question is whether DVS will approve this application. He has not had any conversations with them. The protocol is to file an application with DVS for a Deputy Registrar. Ifthey approve it, we don't know what the turn around time will be with the status of the State. If they were to act before the end of June, parts of the operation could be open. Interim City Administrator SchorZlTIan explained the point of doing this now, is we were waiting during the normal legislative session for two bills; one in the House and one in the Senate that would allow us to offer full service. To not get in the way of the legislation the City chose not to apply until after the legislation was resolved. However, it is still sitting in committee and the legislature will go into special session. Staff was trying to get at the core services we could provide Council Minutes (Regular) June 6, 2011 Page 8 with the original legislation while the driver's license piece is sorted out. To do that we need to appoint a Deputy Registrar because the former City Administrator was on the application. This was also to demonstrate the City's understanding that we are responsible for this operation. Weare doing this now because the regular legislative session is over, we have not been able to communicate with our representatives, and we may have this legislation until next year. Councilmember May stated what if it is denied; do we want to run half a business? What Council approved was a full service office. It sounds like we would open to do a few things and that is not what was agreed. She does not want to move forward until we have approval. Mayor Larson noted the original legislation says a full service office. City Attorney Jamnik stated the driver's license portion was denied based on the existing mileage limitation. Mayor Larson spoke with the DVS and the mileage issue is no longer an issue. The biggest concern was the DVS did not like the structure and wanted more City involvement. Councilmember May asked if we are going to wait until it is approved before moving forward with any type of operation. She felt we should wait because that is the mistake we made last time. Mayor Larson stated they could sell everything except driver's licenses. Councilmember Fogarty clarified the Mayor feels we have met all their concerns and even if the legislation does not go through we may be able to operate as a full License Center. Mayor Larson replied no, not unless the legislation goes through. Councilmember Fogarty stated if the mileage is not an issue anymore, and the structure is not an issue, what is the issue? Mayor Larson stated as far as the City, there were no issues the first time. Councilmember May asked the City Attorney, we approved Quick- Serv coming in so can we now tell them we don't want them to move forward until we have full approval from the legislature? They don't seem to be able to perform the functions that were approved before. She has no desire for an office that can only do a few things. Councilmember Donnelly asked why do we have to re-apply? Because we changed the Deputy Registrar? Do we have to re-apply every time we change the Deputy Registrar? Why do we think it will work this time? He doesn't want to repeat what happened last time. What assurances do we have that will not happen again? Human Resources Director Wendlandt stated we do not have any assurances. The purpose for reapplying was the State thought our application was not clear as far as us recognizing our responsibility for operating and managing the office because of our contract with Quick-Serv. We do need a City employee to be the Deputy Registrar, but that would be the sole reason for re-submitting the application. Councilmember Donnelly stated we had the City Administrator before. Staff clarified we had Quick-Serve managing the office; that is the difference. Councilmember Donnelly stated it still will not be a full service office. Mayor Larson stated if it does get approved within the next couple months and then we re-apply are we looking at two months before the State gets back to us? Staff had no idea. Mayor Larson asked what Quick-Serv wants to do. They would like to open and provide service for license plates, tabs, registrations, and Council Minutes (Regular) June 6, 2011 Page 9 titles. Councilmember May was not willing to approve this and wanted to wait for the new City Administrator if we are talking about assigning staff to different functions. Councilmember Donnelly asked if the legislation passes, do we have to re-submit the application again? Staff did not believe we need to re-submit. We would wait for the equipment and the camera for the driver's licenses. DVS does not have any cameras available at this time. Even if the legislation was approved, we would wait for the camera. MOTION by May, second by Donnelly to table this until the new City Administrator is hired unless we need to address it sooner. Voting for: Larson, Donnelly, May. Voting against: Bartholomay, Fogarty. MOTION CARRIED. Costs for Additional Plans, Programs, and Personnel Maintenance and Replacement of Equipment and Infrastructure: Create Equipment Replacement Fund Funds to Cover Trail Maintenance Funds to Cover Park Redevelopment Funds to Cover Seal Coating Funds to Cover Street Rehabilitation Funds to Cover Computer Equipment Funds to Cover Fire Equipment Replacement (air tanks, turnout gear, etc.) Funds to Cover Building Maintenance (Roof, garage door, flooring, paint) Additional Staffing: Part-time staff (Finance) 1 Full-time or 2 Part-time Admin. Staff Deficit Reduction/Future Operation: Funds to Eliminate Pool and RRC Deficit Improvements to Buildings and Parks Funds for Fuel Station and Salt Storage Other Council Requests Ice Arena Plan to reduce deficit & future use Other - funded by additional Fiscal Disparities (This has no impact on the Levy) Funds Dedicated to Park Improvement Funds to Eliminate EDA Deficit IOther Any excess funds to any deficit Total Additions to 2012 Budget: Approximate Annual Tax Impact to Average ($199,800) Home: $ 162,000 $ 15,000 $ 25,000 $ 350,000 $ 600,000 $ 20,000 $ 30,000 $ 20,000 1$ 155,000 I I $ 250,000 I $ - $ - $ - $ - $ - $ - $ - $ - 0% 100% 0% 0% Priority 4 2 8 1 3 7 5 6 E3 I~~s ~ Include in Total Additions 2012 Budaet? No Yes No Yes No No No No INo INo No No No No No No No No No Yes No No I: 1$ 1$ $ $ 15,000 $ $ 350,000 $ $ $ $ 25,000 New Administrator discussion Develop plan Marshall Lines discussion? $ $ $ $ $ $ $ $ 0% 100% 0% 0% 645,5631 78.88 1013 1010 1015 1014 1035 L-~. Budget Increases Elections Administration Salary & Benefits Dues Training Benefits City Hall Salary & Benefits Equipment Supplies Building Supplies Cleaning Supplies Other supplies Prof svcs (Cleaning) Municipal Services Electricity Natural Gas Equipment Maintenance Building Maintenance Total City Hall Communications Community Development Dues Training Program Expense Total Com Dev TOTAL ADMIN ~-i'''''',,,':''>-''';.' :,4 ,.:, 1011 Human Resources Salary & Benefits Professional Services Data Processing C::'9~~f" . Total HR .. ~fP'V 1021 1022 ~f ~'h'~ ~ Information Technology Capital Finance Salaries and Benefits Promote Existing Staff Overtime Dues Training Misc Training $ Risk Management Insurance Premiums $ 9.... .......... ........TOTAL FINANCE ';<,~'+5\":::.:'B':')"'#"':':::'::'''':':':'''' .. ".- ...... ~~...d.;;./'J('/A<9jh,:iial&il'iti:"':':' Amount $ Explanation 19,798 Election year 1,372 (900) Admin Svc Director (510) Admin Svc Director (38) 3,465 950 650 (1,000) 500 (24,445) 3,800 12,250 2,250 (10) 1,000 (590) 200 $ $ $ $ 500 490 3,300 4,290 Chamber directory Moved Farmers Market $ 23,660j 2,515 3,500 City wide Training 4,000 LOGIS HR Payroll 'vw" $ . ..' . .. . . '10,01$[ $ 35,700 35,700 (14,136) 6,139 (2,000) 25 700 (100) (9,372) 7,885 6/:U:;.<-::0':'" $ (1,487)[ 1051 Patrol Services Salaries and Benefits Supplies Fuel K-9 Dues Officer Training Radio Contractual Services Total Patrol Services Police Investigations Salaries and Benefits Equipment Supplies Total Investigations hA 'nnh' TOTALPOLICE 1052 r'~ 1060 Fire Dept Salaries and Benefits Fire Levy Pension Equipment Supplies Other supplies Uniforms Professional Services Cell phones Electric Training & Mileage Equipment Repair Building Repair Contractual services Total Fire Dept 1061 Fire Rescue Services Other supplies Equipment Supplies Total Fire Rescue Svc Ilii"''''''''8",.nd_iih'% % TOTAL FIRE $ 50,393 3,500 5,000 500 2,000 3,000 570 64,963 $ 11,248 1,170 12,418 $ 77,381 I $ 24,372 48,825 792 Pager and radio batteriei 1,000 Nozzles 2,900 turnout gear and uniforrr 4,730 Annual pump testing (500) 1,500 (494) 265 250 225 83,865 $ 500 500 1,000 84,8651 ,-. ""kh\.d''''i''~''.:':,:"'''',, $ ;"\""'.""d'i><<-h>'+~ 1030 Planning GIS Fees Dues Training Total Planning Inadverdantly left out of 17,200 last year's budget 125 500 $ 17,825 1070 Engineering Salaries & Benefits 6,833 Survey - Engineering Supplies Total Engineering $ Concrete and Aggregate Testing Equipment as 4,300 discussed at workshop 11,133 1031 Building Inspections Salaries & Benefits $ (4,688) 1076 Natural Resources Salaries & Benefits 92 Vehicle Maintenance 800 Training 200 Tree and Stump Professional Services 5,000 removal, Tree planting Total Natural Resources $ 6,092 LP'_'~~~~~~~~:'_~66;e TOTAL ENGINEERING "tepp; ; cPr $ 30,362 I 1072 Streets Salaries & Benefits (11,927) Street Material 6,000 Building Supplies/Parts 500 Traffic Sign Replacement 1,000 Fuel (2,000) Uniforms (100) Professional Services (4,155) Municipal Services 200 Electric 5,000 Printing (100) Building Maintenance 550 Supplies (30) Total Streets $ (5,062) 1073 Snow Salaries & Benefits (3,307) Vehicle Supplies 5,000 Street Material 10,000 Sand, Salt Fuel 7,000 Repairs 750 Total Snow $ 19,443 1090 Park Maintenance Salaries and Benefits Equipment Supplies Vehicle Supplies Building Supplies Other supplies Landscape Materials Chemicals Fuel Uniforms Prof svcs (Cleaning) Cell phones Electric Dues and Subscriptions Training Mileage Reimbursement Equipment Maintenance Equipment Rental Total Park Maintenance $ 1094 Recreation Admin Other supplies Legal fees Dues! Subscriptions Training Mileage Reimbursement Total Rec Admin $ 1095 Recreation Salaries & Benefits Other supplies Program Expense Total Recreation $ 11,614 (330) 2,550 600 4,253 (1,625) 2,950 2,000 (550) 11,389 (55) 1 ,400 (170) (860) 600 2,200 3,600 39,566 900 Fuel (500) 118 400 (600) 318 610 400 52 1,062 4(),946I 'hC_,,'kS, TOTAL PARKS & RECREATION, $ [0 Total Budget Changes IT Changes (Capital) Total General Fund Budget Changes $ $ 280,123 30,526 310,649